Unit market posts positive results
The Queensland unit and townhouse market is showing healthy signs of recovery with many areas across the State posting median prices increases over the December quarter, according to the Real Estate Institute of Queensland (REIQ).
The REIQ quarterly Queensland Market Monitor, which tracks median property prices and rents across the State, found that prices in the fourth quarter of last year rebounded in most areas of South East Queensland.
Similar to the housing market, it appears that the last quarter of 2011 possibly marked the turning point in Queensland’s property market.
“What we are starting to see is that as 2011 progressed, so did confidence levels in our property market with prices beginning to strengthen,” REIQ CEO Anton Kardash said.
“Many regions posted their most robust price results this quarter since prior to the natural disasters at the beginning of last year.
“As we move into 2012, REIQ accredited agencies are reporting healthier levels of enquiry with first home buyers and investors especially taking a keen interest in the more affordable unit and townhouse market.”
According to reiq.com, there are more than 5,000 listings for Queensland units and townhouses currently for sale under $350,000.
The numbers of first home buyers continues to improve in Queensland with the latest ABS figures showing they now represent about 20 per cent of the market – the highest proportion for more than two years. The softening of property prices over the past two years, as well as the relatively low interest rate environment, is partially behind this increase in demand from first-timers.
“Thousands of first home buyers brought their buying decisions forward when the First Home Owners Boost was available in late 2008 and 2009,” Mr Kardash said.
“Their numbers then hit historic lows in 2010 once the boost was no longer available so what we are seeing now is a return to more normal levels of first home buyer activity, which is very positive for our market.”
The median unit and townhouse price in Brisbane increased 2 per cent to an even $400,000 over the December quarter. On the Gold Coast, it increased 5.3 per cent to $350,000 and was up 2.1 per cent to $245,000 in Toowoomba.
Median price reductions have been recorded in some regional areas however the unit and townhouse market in these regions is historically much smaller than their housing market so is more prone to median price fluctuations on a quarterly basis.
Fraser Coast, for example, registered a median unit price fall of 15.6 per cent to $270,000 over the December quarter however this was because there was a reduction in the number of new and waterfront properties sold compared to the previous quarter. Over the year ending December its median unit price was steady.
An increase in the preliminary numbers of unit sales was recorded on the Fraser Coast, Bundaberg, Rockhampton, Townsville and Cairns over the quarter. With the exception of Cairns, all major regions posted either steady or increased median unit prices over the year ending December.
– Source: http://institute.reiq.com/REIQ/Media/2012Releases/Unit_market_posts_positive_results.aspx
